Financial Governance of Cooperative Sacco's in Kenya

Prudent corporate governance is a requirement for effective and efficient performance of any organization and, therefore, Savings and Credit Co-operative Societies (SACCOs) are no exception. Performance of the SACCOs is usually associated with their financial performances which are usually highlighted by dividend declarations and payments. The management committees in these SACCOs are also responsible with the utilization of the member¿s funds and the majority of them have inadequate financial records leading to many fraudulent transactions Following challenges such as mismanagement, conflicting mandates among regulatory bodies and poor corporate governance, the Savings and Credit Co-operative Societies (SACCO) Societies Act No. 14 of 2008 was put in place to address some of these challenges. This study is anchored the impact of this legislation on financial management of SACCOs. It not only highlight the impact of the legislation on the corporate governance but also adopted descriptive research design. Data was collected through questionnaires and secondary sources.